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Direct Cost Percentage

AKA The Magic Number

Why magic? Once you calculate the DCP for your business, it's simple to calculate a retail price from the Direct Cost (DC) of a product or service. The DC is the inventory and labor spent on the item or service you are selling. When the DC is divided by the DCP, a result is a price that has been marked up to cover Overhead expenses and Profit.

Inventory + Labor % DCP = Price

Rental Rate Tool

Do you need help figuring out what to charge to rent an item you’ve purchased or made? This calculator walks you through the steps so you capture all of your direct costs – the cost to buy or make the item, and any specific extra time involved for that rental. For example, cleaning the piece or rewrapping it/preparing it for storage until the next time it gets rented.

This number is simply the Cost To Rent doubled. This adds some for your business bills and profit.